Bitcoin is undermining the hedging appeal of gold and bonds

CoinDesk reports that as Bitcoin is included in more institutional portfolios, the market positions of traditional safe-haven assets such as gold and bonds are being challenged. Data shows that global outflows from gold ETFs reached $8.9 billion in the first quarter of 2025, while net inflows into Bitcoin spot ETFs were $12.6 billion over the same period. Analysts point out that under the backdrop of expected Federal Reserve rate cuts and geopolitical conflicts, Bitcoin's high liquidity and anti-inflation characteristics make it a new generation hedge choice. The yield on 10-year U.S. Treasury bonds has climbed to 4.5%, further weakening the appeal of fixed-income assets.